What is defined as duplicate coverage?

Duplicate coverage refers to the situation where an individual has two or more insurance policies or riders that provide similar benefits for the same insured individual. This means that if a claim is made, the same risk or event could potentially be covered by multiple policies, leading to overlapping coverage. The essence of duplicate coverage lies in its ability to create redundancy in protection, which can sometimes lead to confusion over claims and benefits.

In contrast, having multiple policies with different coverage amounts does not necessarily constitute duplicate coverage as those policies might cover different aspects or provide varying levels of protection rather than repeating the same coverage. Securing insurance on a previous policy to increase coverage could involve adding a rider or an additional policy but wouldn't fall under the definition of duplicate coverage if it enhances overall protection instead of replicating it. Lastly, owning supplementary insurance that covers different risks does not align with the definition of duplicate coverage. In this case, the supplementary policy is designed to address additional or different needs, hence maintaining a distinct purpose.